Private sector accounts for a whopping 87 per cent of the total outstanding investments worth over Rs 4.5 lakh crore attracted by Haryana as of June 2012. The Gurgaon Chamber of Commerce & Industry said that his skewed proportion was due to lack of public sector involvement in investment spending in Haryana.
“It is true that, yes, majority of the investments in Haryana is only from private sector. Because we hardly have any unit which is public sector undertaking or Public Private Partnership (PPP). There are, of course, projects coming up, and there has been news that people are contemplating and endeavoring to get in PPP in Haryana but as of now this is the scene, which Assocham has presented,” SK Ahuja, Secretary, Gurgaon
Chamber of Commerce & Industry, told this citizen journalist
Besides, with a share of over Rs 82.9 lakh crore, the private sector accounts for over 59 per cent of the total outstanding investments across India
worth over Rs 140 lakh crore as of June 2012, highlights the analysis.
“Flow of the private investments is decided by the attractiveness of investment opportunities as they are mostly driven by profitability considerations. Bureaucratic efficiency, infrastructure facilities, and ease of land acquisition influence the flow of private investments. Tax concessions, product market conditions and exit policies are effective tools of private investment attraction,” said D.S. Rawat, Secretary General, Assocham in a statement.
Jharkhand, Odisha, Chattisgarh and Uttar Pradesh
are other top leading industrial states where private sector accounts for over 70 per cent of total investments made across the state.
With a share of about 12.5 per cent, Gujarat
accounts for the highest share in the total outstanding private sector investments (including both domestic and foreign private sectors) across India as of June 2012.
Of the total outstanding investments in Gujarat worth over Rs 14.8 lakh crore, private sector accounts for over Rs 10.3 lakh crore thereby registering a share of about 70 per cent in the overall investments across the western state.
With private sector investments worth over Rs 8.8 lakh crore, Odisha ranks second with a share of 10.7 per cent in the total private sector investments across India. Besides, the private sector accounts for almost 75 per cent share in the total outstanding investments worth over Rs 11.8 lakh crore across the state.
Maharashtra (8.9 per cent), Andhra Pradesh
(8.4 per cent) and Karnataka
(7.2 per cent) are other states with maximum share in outstanding private sector investments across India.
But interestingly, the share of private investments in the total live investments across these three states is less than the all-India average of over 59 per cent, points out the analysis.
Kerala, Himachal Pradesh, Jammu
and Kashmir, Uttarakhand
have the least share in India’s total private sector investments which is even less than one per cent.